Ofcom bans tie-in contracts
13th September 2011.
Ofcom, the independent regulator and competition authority for the UK communications industries has today announced that rollover or tie-in contracts will be banned from the end of this year.
These contracts, known as Automatically Renewable Contracts (ARCs), roll forward to future periods automatically unless the customer opts out. The ban will apply to ARCs for all landline and broadband services sold to the general public and small businesses. Big business can watch out for itself.
Ofcom have introduced this measure to help foster competition between providers as customers are finding it difficult or expensive to switch between providers in some cases. Residential providers who have been operating ARCs are identified as: BT, Adept Telecom, Axis Telecom, Eze Talk and iTalk.
New ARCs become prohibited from 31st December 2011 and existing ARCs will all have to be gone by 31st December 2012.